In macroeconomics, low rates of national employment may signal underdevelopment or long-lasting depression while high rates of national employment may signal economic growth and development.
Following this logic, Odhiambo used the bounds testing Economic growth dissertation procedure suggested by Pesaran et al. When prosperity of the population increases, people are more inclined to consume more.
FDI does not have a significant impact on economic growth in emerging economies. It was also noticed that FDI stimulated more domestic investments rather than consumption World Bank, The null hypothesis of the test is that the RE-model should be applied while the alternative hypothesis is that the use of the FE-model is more appropriate.
On the other hand, the effect of FDI on the host economy is not limited to only positive impacts. Therefore, central banks in emerging economies should accumulate foreign exchange reserves in advance in times of growth to have opportunities for mitigating harmful effects of crises.
The author revealed that capital received from international sources may be directed at imports instead of being invested in the host economy. On the other hand, profit in foreign currency might not be received in case the products of international companies are mostly sold Economic growth dissertation the local market rather than exported overseas Lipsey, International companies can create jobs for population in both rural and urban regions of the recipient country Jacobs, How to search for a link?
Journal of International Economics, 45, pp.
Besides, FDI might negatively influence the adoption of local regulatory acts. Empirical Economics, 42, pp. Recommendations for future improvement of the research are provided at the end of the paper.
All forms of copying, distribution or reproduction are strictly prohibited and will be prosecuted to the Full Extent of Law. Quantitative research using methods of statistical analysis was employed for attaining this aim.
Another limitation of this research is that it did not take in to account potential structural breaks in data. World Bank Global Development Finance: Is there a relationship in the UK?
In turn, Jacobs suggested three ways in which FDI could influence economic growth. Discussion The results of this dissertation have not supported previous research conducted by Nistor and Asongu who found the effect of FDI inflows on economic growth to be significant in developing countries.
As for region-specific research, the current findings are in line with those provided by Alvarado et al. Chapter 2 reviews literature on FDI. However, previous research conducted by Al Nasser showed the effect of FDI on economic growth to be significant.
This is especially evident during the financial turmoil when foreign firms were not inclined to get rid of their subsidiaries immediately while banks attempted to significantly reduce short-term lending. Chapter 4 provides results and discussion.
This problem, as well as potential endogeneity issues, needs to be considered in more detail in future studies.
The overarching goal of microeconomic research is to identify the incentives of various agents and trade-offs that they may face. Financial economics is a brand of economics that examines the utilisation and distribution of economic resources in financial markets in which decisions must be made under uncertainty.
Moreover, there are believed to be technological and know-how spill-overs that can help local businesses to become more competitive as well Borensztein et al.
What are the differences? This branch of literature explores the cause and effect type relationship between the social causes and their underpinning economic effects. The same relationship holds between the natural resources rent and economic growth. This also is not line with the conclusions of Simionescu who demonstrated a positive and significant relationship between FDI and GDP growth in emerging economies.
This means that the null hypothesis of the test has been confirmed, and thus the RE-model produced more efficient and consistent coefficients than the FE model.
As conditions of the use of FDI may be different across regions, the sample analysed in this study is comprised of 10 emerging economies where five countries are from Latin America and five countries are from the South East Asia.
This allows for indicating specifics of the use of FDI and the influence of additional factors on growth in different regions. Classical and neo-classical economic growth theories state that the main drivers of production in any economy are physical capital, labour costs and the level of technological development that determines productivity of capital and labour.
Trade openness was a significant predictor of economic growth in both models. This means that there is no strong evidence that FDI produced a significant positive impact on economic growth in Latin America.Economics Department Dissertations Collection.
Follow. Public enterprises in mixed economies: Their impact on economic growth and social equity, Andong Zhu. Submissions from PDF. An economic analysis of prison labor in the United States, Asatar P Bair.
PDF. Example Economics Dissertations. Social Infrastructure and Economic Growth. This dissertation has had a focus on the relationship and links between social infrastructure and economic growth in the context of Sub-Saharan countries.
Published: Wed, 09 May Analysis of Global Economic Growth. The focus is on internal working of the regional economies as well as on their interaction with other regions.
There is a component of economic growth and development at a regional level. The suggestions below will give you further ideas for your economics dissertation topics: • Regional development and profitability of the businesses.
Accordingly, this thesis explores the effect of FDI on economic growth in the region, using data from 43 countries over the period I employ ordinary least. Accordingly, this thesis explores the effect of FDI on economic growth in the region, using data from 43 countries over the period I employ ordinary least.
The results of this dissertation have not supported previous research conducted by Nistor () and Asongu () who found the effect of FDI inflows on economic growth to .Download